Research On Improving The Reform Of Public Finance System In Our Country

Financial as the basis of economic activity, are very important for any country and personal. China, as a big socialist country in the nine decades of the20th century, the introduction of market economy development mode in the same era began the introduction of public finance management mode. Public finances in order to meet the public needs of society, raise public as well as the social, resource allocation behavior and way compensate for the market failure of a government-led, holistic, normative and stability characteristics. At this stage of China’s economic and social development, China’s political and economic development is still in transition, and thus for the public finance system in the building of our country is lacking.This paper first introduces the basic theory of public finance and public finance system, to analyze the course of the evolution of China’s current system of public finance, manifested in the unified leadership of the unified revenue and expenditure in the1950-1952fiscal system,1953-1978hierarchical management system from1979to1993divided the balance of payments and graded contract system, the tax sharing system since1993. Which the existence of the problem is reflected in the various sectors of the spending mechanism unscientific, mainly in the first two industries spending too much, too little spending on tertiary industry; property rights and the powers of the central government and local non-standard performance in the financial and tax divided into central taxes, local taxes, the central and local shared tax, led to the financial power of the central and local financial authority, the contradiction between the powers of the central and local powers and normative; transfer payment system is not perfect, reflected in the central and local transfer tax system is unscientific; open system of financial information, especially the lack of transparency of Excellencies financial funds; incomplete budget, mainly on the people’s livelihood funds of funds and non-livelihood; weak oversight mechanisms. The main reason for the existence of these problems is that:the heavy task of industrialization and urbanization, the imbalance of regional economic and social development, the slow pace of transformation of government functions, the market mechanism is imperfect. Thus, improve China’s public finance reform suggestions:to establish an effective scientific degree of the tax system, reflected in the establishment of the central and local tax collection system, set two sets of central and local tax collection agencies; reasonable division of the central and local financial authority and powers and performance to regulate property rights and powers of the central and local, the specification of power and financial power; reform and below the provincial transfer payment system, reflected in the scale of transfer payments to moderate and relatively flexible and elastic and transfer payments to be reasonable specification; establish strong financial supervision system, reflected in the fiscal balance of payments and the budget is announced to the local people’s congresses and the public, media, and on-site review and long-term monitoring; establish public financial information system, including the departments budget openness and Excellencies funding public rationality; spending mechanisms and fiscal policies regulate the industry, focused investment in key industries and basic industries, and increase the financial investment industry on the livelihood of the people, to establish an effective financial analysis of policy; establishment of a democratic system of public finance, specific principles of scientific decision-making, the legalization of the implementation of the principle, the principle of central and local coherence.This paper for the exploration of China’s public finance reform, both from a macro analysis of the construction of China’s financial system and fiscal policy, the real problem of local finance and financial departments at all levels from the microscopic analysis. The financial basis for the functioning of society, but also as the key to the running of all aspects of society, making a good fiscal policy, will be conducive to the improvement and development of the other aspects. Embodied in the reform of China’s public finance system and construction on the one hand, in the social system, reasonable and effective public fiscal policy can help other social systems, such as the improvement and development of the social security system, the environment and health care system and the education system; on the other hand to promote the harmonious development of China’s social and economic suppression of the phenomenon of corruption and waste of this social epidemic, and promote the healthy development of the various sectors of the society as a whole.